Tata Realty plans $750 million 7-year fund

26 October 2007

The seven-year real estate fund will have pension funds, insurance companies and government organisations as investors, Dinesh Chandiok, managing director of Tata Realty, told reporters on the sidelines of the US-India CEO Forum.

TRIL, a 100 per cent subsidiary of Tata Sons, hopes to close the fund in two weeks'' time.

"There may be some diversion of funds into the stock market, but the impact on realty investments may not be much," Chandiok said.

The booming stock markets and capital inflows might not have much of an impact on realty investment, Chandiok said, adding, the demand-supply gap in the industry still existed, and realty prices may witness a steady rise.

Tata Realty focuses on infrastructure projects related to airports, urban infrastructure, roads, bridges, SEZs and logistics parks, among others.

TRIL was set up to serve as the group''s real estate and infrastructure development arm. Currently estimated at $14 billion, real estate and infrastructure has emerged as a key sector in India''s economic growth.